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The Multilateral Investment
Guarantee Agency
Commentary on the Convention
Establishing The Multilateral
Investment Guarantee Agency
This Commentary refers to the Convention as adopted on October 11, 1985.
The amendments of November 14, 2010 are not addressed.
Commentary on the Convention Establishing The
Multilateral Investment Guarantee Agency
Table of Content
Introduction 1
I. Status, Establishment and Purposes 3
II. Membership and Capital 3
Membership3
Capital 4
III. Operations 7
Scope of Covered Risks and Eligibility 8
Host Country Approval and Subrogation13
Payment of Claims14
Relationship to National and Regional Entities as well as Private
Political Risk Insurers 15
Reinsurance 17
Limits of Guarantee 19
Investment Promotion20
Guarantees of Sponsored Investments22
IV. Financial Provisions 25
IV. Organization and Management 26
V. Voting, Adjustment of Subscriptions and
Representation 29
VI. Privileges and Immunities 31
VII. Withdrawal, Suspension of Membership and
Cessation of Operations 33
VIII. Settlement of Disputes 34
IX. Amendments 37
X. Final Provisions 37
Entry into Force37
Territorial Application 38
i
Commentary on the Convention Establishing the
Multilateral Investment Guarantee Agency
Introduction
Considerable attention has been focused in recent
years on the need to remove barriers impeding the growth of
foreign investment in developing countries. Many countries
have enacted new laws to promote foreign investment
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